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Mortgage Disclosure Improvement Act 2009 - some lenders are already implementing changes

By
Mortgage and Lending with CNN Mortgage

Loan File

 

These changes affect the disclosure process for purchase money and refinance mortgages, and provide additional consumer protection and transparency over the existing Truth in Lending rules:

 •·         Initial disclosures provided to applicant within three days of loan application, no fees can be collected during this three day waiting period (except for a reasonable credit report fee).

•·         Intial disclosures must also be provided again at least seven business days before a borrower signs closing docs. 

•·         The appraisal report cannot be ordered until after the three day waiting period (after initial disclosures).   

•·         Borrower must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing.   The appraisal is considered "received" 3 business days after mailing.

•·         Any increases of fees that result in an APR change by  0.125% of the loan amount during processing require re-disclosure.   The borrower must receive this revised TIL disclosure at least 3 business days before closing, providing the borrower with the time required to determine if the borrower is comfortable with his or her loan choice.

Today's Interest Rates : Same as yesterday. Condos lead the existing home sales numbers this morning, which were up over last month.  Sales took place with mortgages under 5%.  Expecting strong interest in 2-yr Treasurys auctioned this afternoon.  MBS market should be quiet today.